Can I get a jumbo reverse mortgage to pay off existing mortgage debt?

Answer:

If you are
a senior over 62, and you own a luxury residence with first and second mortgage
to pay for some 20 years left, how do you pay this? Do you have to sell your
pretty home? The jumbo reverse mortgage is what lenders have come up with to
prevent this from happening.

Jumbo reverse mortgage loans can be used to buy second homes.

Depending
on the equity you have on your house, you could get jumbo reverse mortgage
financing to pay off your existing mortgage debt, pull cash out and/or set
credit lines. The jumbo reverse mortgage credit could even be used for another
house purchase - there are no limitations to the purpose you'll be using your
money for. Also, you get all this with no monthly payments as long as you live
in your home.

Lenders
have designed jumbo reverse mortgage loan programs as they found out that
reverse mortgage loans have long been used to satisfy first mortgage debt.
Also, there were millions of borrowers who refinanced in 2003/04 and who are
getting into their senior years with mortgages to pay for more than 10 years
from now.

Jumbo and
super jumbo reverse mortgage loans have similar guidelines for debt repayment
as conforming reverse mortgage amounts. The mortgage balance and interest
becomes due to the lender upon the death of borrower or sale.

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